Tax system changes supported by deputies will become a pillar for further business development - expert

October 4, Vitebsk / Diana Kurilo - BELTA /. Private business has positively assessed the draft budget for 2013, approved in the first reading by the House of Representatives. The opinion of entrepreneurs of the Vitebsk region was summarized in a conversation with a BELTA correspondent by Nina Lukyanova, Executive Director of the public association "Association of Employers and Entrepreneurs". "The draft budget has at least three key points that, if fully approved, could become a support for the further development of private initiative," the interlocutor believes. The developers of the draft budget proposed to increase several times the tax rate on unused property. "This will be an effective incentive for its involvement in circulation, including with the participation of small and medium-sized businesses," explained Nina Lukyanova. Another point is directly related to small businesses and concerns the increase in the criteria for applying the simplified tax system. "This is a serious step in implementing the principle of partnership between the state and business, which can significantly facilitate the activities of entrepreneurs," the expert believes. A change in the procedure for forming innovation funds will bring real benefits to businessmen. A single rate of deduction to innovation funds is established for all enterprises, amounting to 10% of the profit tax amount. At the same time, the profit tax rate and the tax burden on organizations of all forms of ownership will not change, and deductions to funds will be made by financial authorities from the amounts of profit tax paid by economic entities. "All these proposals were made by the entrepreneurial community during the discussion of draft laws aimed at liberalizing the country's economy, and it is gratifying that they have been taken into account by the government and have received the support of deputies," the interlocutor emphasized. The House of Representatives of the National Assembly of Belarus adopted the draft law on the republican budget for 2013 in the first reading at a meeting on October 2. The formation of the draft republican budget is carried out on a deficit-free basis. The total amount of consolidated budget revenues for 2013 is projected at Br197.41 trillion, or 31.3% of GDP. Revenues under the draft republican budget are projected at Br121.72 trillion, or an increase of 26.1% compared to the expected execution for 2012. The main sources of tax revenues of the republican budget are value added tax, excise taxes, and tax revenues from foreign economic activity. Consolidated budget expenditures for 2013 are projected at Br197.41 trillion. Expenditures under the draft republican budget are formed in the amount of Br121.72 trillion. The main features of the draft republican budget for 2013 are the formation of innovation funds from the profit tax paid by organizations, changes in approaches to crediting profit tax to the budget of Minsk, and the introduction of a non-tax payment for gas supply organizations. In 2013, the main goals for the public finance sector will be to increase the stability and competitiveness of the national economy, ensure the guaranteed fulfillment of the budget's financial obligations to external and internal creditors, maintain the quality of budget services, and provide social protection for vulnerable population groups. As expected, the House of Representatives of the National Assembly of Belarus will consider the draft budget for the next year in the second reading on October 8. -0-